Tether’s New Legal Era: Hilliard Navigates EU MiCA Regulations

• Tether faces a 6-18 month transition period to comply with EU MiCA regulations, ensuring reserves and liquidity requirements.
• Michael Hilliard leads Tether through MiCA challenges as exchanges like Coinbase delist USDT, awaiting regulatory clarity.

Stuart Hoegner, the long-time General Counsel for Tether and Bitfinex, has retired after serving in the position since 2014. Assuming his position is Michael Hilliard, who today must guide Tether across the complexity of the European Union’s recently adopted Markets in Crypto-Assets (MiCA) rules.

Beginning on December 30, 2024, this legal structure strictly enforces reserve backing and enough liquidity to guarantee financial stability and consumer protection, therefore imposing strong obligations on stablecoin issuers.

TETHER’S LEGAL BOSS CALLS IT QUITS JUST AS CRYPTO RULES GET REAL

Stuart Hoegner, Tether’s legal go-to guy, has hung up his briefcase, leaving Michael Hilliard to navigate the hot mess that is MiCA regulations in the EU.

The new rules are all about making sure stablecoins have… pic.twitter.com/adnmJwyqdN

— Mario Nawfal’s Roundtable (@RoundtableSpace) January 3, 2025

Tether’s MiCA Compliance Faces Delays and Exchange Delistings 

For Tether’s activities inside the EU, the launch of MiCA has not been without results. Although USDT, the company’s flagship stablecoin, has long been a leader in the worldwide stablecoin industry, its adherence to MiCA rules is under close inspection right now.

Tether notably still needs to have the required e-money license demanded by MiCA. This delay has spurred numerous European exchanges, including well-known sites like Coinbase, to temporarily delist USDT in order to wait for more clarity on the regulatory space.

CNF previously reported that Tether expects a 6- to 18-month changeover period to match MiCA’s needs. But the lack of instant compliance has given people space to conjecture about Tether’s future on the European market.

While some exchanges are waiting for more developments before making any firm decisions, others have taken a cautious approach and choose to withdraw USDT from their listings.

The wider difficulty of keeping a competitive edge in the more regulated crypto environment adds to the complexity of the matter. MiCA aims to set a benchmark for crypto regulations, and neglecting to adhere to these standards could compromise Tether’s reputation in the EU.

Navigating these obstacles is no minor chore for Michael Hilliard, particularly given the rules demand operational improvements as well as preserving investor confidence in a market already replete with volatility and mistrust.